Moth3r,
I just looked at the sample vob and it looks very good. IMO the upsampling does not lose much (any) detail because of the already quite low resolution on LDs. I also think that at least all crt users with 16:9 mode will benefit much from anamorphic even if it is STS "faked".
BTW I noticed a linedrop in frame# 1030 in the sample, it's right in the middle of the picture, maybe you already fixed it...